Just some random thoughts for this week's column.
* There is a really excellent series of articles about the Internet and security in the latest issue of PC World magazine (May 2001). It includes "75+ Ways To Fight Hackers, Spam, and Scams" and the "Ten Commandments Of Internet Privacy". There is far too much to summarize here, but please try to get a copy and read it. It may prove an eye-opener for you in many ways.
* What is going on with the dot-com collapse? Many of the online businesses are going off the air, sometimes very quickly. My personal thoughts on the subject are that this was bound to happen. The way these things work is this: It starts with the "IDEA". Someone develops an initial concept of a way to make money easily on the Internet. For example "Let's sell refills for pencil erasers on the Internet!" It doesn't matter if the idea is good or not - it only matters that you can find funding. At one point in time, there was so much Venture Capital money out there that it was hard NOT to find money. As far as profits or return on the VC's investment go, you tell the VC that your goal is market penetration and market share - the profits will come later.
You then put together a minimal company infrastructure. Forget about customer service, or technical support, or rapid shipping - you will clean that stuff up later. You get on the 'net and start selling, and hopefully even get your company to an IPO (Initial Public Offering of stock) position.
Now the real fun begins. After IPO, your company is worth more than GM. You use the (inflated) value of your stock to purchase other companies. For example, you decide you need to purchase an existing pencil company to have a market for your erasers. Now, an existing and profitable company (making pencils) is part of your eraser conglomerate. When the light finally goes on, and you realize that people just aren't going to BUY erasers on the 'net, the whole thing collapses, even taking the formerly profitable pencil business down with it.
This is no way to do business.
* Speaking of buying in the Internet, I still do a lot of that, and my wife now has her own computer and has joined in. As long as you know what you are shopping for and what the right prices are, you can do well shopping this way. On the other hand, if you really don't know what products or out there, or how to use them, then you are probably better off sticking with "brick and mortar" companies. As anything else, the Internet is a tool that belongs in your toolbox with other tools and techniques - use it when appropriate.
* One item to watch out for when shopping online is shipping charges. Many times you find a "deal" on the price of a product, only to find that shipping costs from that particular company are exorbitant. Check shipping costs before you click on the final "Buy" button. If the company doesn't show them too you until its too late, don't shop there.
* Spring is finally here! Get out and take some digital photos!
(Bob Seidel is a local computer consultant in the Southport / Oak Island area. You can visit his website at www.bobseidel.com or e-mail him at bsc@bobseidel.com).